3% cut in income tax rates (2003 income)

Article 2 of the 2004 Finance Act rewrites the income tax schedule in Article 197 of the General Tax Code for 2003 income: the six rates move from 7.05%, 19.74%, 29.14%, 38.54%, 43.94% and 49.58% (2003 Finance Act schedule) to 6.83%, 19.14%, 28.26%, 37.38%, 42.62% and 48.09%, with the first taxable bracket starting at €4,262. The cap on the family quotient benefit rises from €2,051 to €2,086 per half-share and the age limit for attaching student children is lowered from the 26th to the 25th birthday. Provisional instalments and monthly payments in 2004 are reduced by 3%.